Strong EU amino acids market, while Chinese market weak

More regions show firmer prices now, as the new higher container freights are calculated into the price and nearby availability is tight due to delays. Learn more in this week’s feed additives snapshot (week 03).

Relatively low priced products like lysine sulphate, lysine hcl and threonine therefor show a significantly higher price for spot and Q2 business in for example Europe. But prices in the US are also a bit firmer now, although not to the same extend as in Europe. The FOB China prices for amino acids remain stable to weak, as there is significant oversupply. Buyers have contracted most of Q1 and in some cases a portion of early Q2 as well for lysine and threonine. Methionine is a bit firmer as every supplier has a story of its own in terms of availability, maintenance, delays, price pressure or unwillingness to offer for Q2 yet. That all combined has led to a stable to slightly firmer market at the moment. Valine has increased quite considerably in Europe due to less availability from western suppliers and at the same time delays from China and higher freight cost from China.

In partnership with Feed Additive Prices

Lysine

At least in Europe, spot prices have increased significantly as there some doubt about a timely replenishment in March and onwards due to delays ex Asia, and therefore sellers are not keen to offer their current buffer stocks, if any. Prices for early Q2 delivery are now also firmer in Europe, as significantly higher container freight rates are taken into the calculations. Other regions do not seem to be impacted yet to the same extent as Europe, although most container trade lanes ex Asia show higher rates due to the Red Sea issue. In China, the lysin market is stable to weak and oversupplied, and FOB prices are stable to weak. Most of Q1 is contracted by now and a small portion of Q2 as well.

Threonine

Especially in Europe, threonine spot prices but also prices for March/April delivery, are increasing. The main reason is the impact of delays, therefore lower stocks, and significantly higher container freight rates ex Asia. Although the situation is interesting, as FOB China prices have been declining lately as there is ample product available. But at the moment the overall sentiment is bullish in for example Europe. The market is a bit active amongst those who need to cover Q1 and early Q2. Q1 is mostly contracted, and a small portion of Q2 as well.

DL-Methionine

Due to several upcoming maintenance periods at manufacturers and a general desire to increase prices, and due to the increase in container freight rates, the market price in several regions shows a slight increase. The methionine market is a bit more active at the moment, but nothing significant. Most of Q1 is contracted by now and several buyers have also contracted their early Q2 needs.

Tryptophan

The tryptophan market in mainly Europe has turned bullish as supply has become tight from the main Western suppliers. It is expected that throughout Q1, supply will be reduced from a European-based supplier, and at the same time the export ex Asia to several main regions is expected to be disrupted due to the container situation. In Europe, this has already led to a price increase and the market is active for remaining Q1 and early Q2 buying.

Valine

In line with many products ex China, the recent stable to weak market has now become firmer in for example Europe, in anticipation of poor container logistics and higher freight rate impact. One of the main Western suppliers has therefore stopped all offers for Q2, to assess the current supply situation. FOB China prices have been stable over the past few weeks, at a low level though. The overall valine market is quiet and calm at the moment. Except for Europe with some firmer prices and activity seen for the remainder of Q1 buying. Q1 is mostly contracted and a small portion of Q2 as well.